Amman Stock Exchange weekly analysis 

(MENAFN - Jordan Times) The Amman Stock Exchange (ASE) still suffers from low trading volumes following disappointing third quarter corporate results. Consequently, the ASE general index shed 0.7 per cent closing last week at 2,573.4 points, affected by falling share prices of strategic companies, most significantly those of Arab Bank and Royal Jordanian Airlines.

Due to the absence of disclosures at this time of the year, we expect the general index to fluctuate within a narrow price range with a chance for active trading on a number of speculative shares.

All sectors regressed with real estate registering the largest loss as its index fell by 1.6 per cent.

As for trading activity, 93.7 million shares exchanged hands. Leaving gains at 26 firms and losses at 96 entities out of 192 traded corporations.

In terms of value traded by sector, real estate sector came in first place accounting for 26.4 per cent of the total followed by the services sector with 25.3 per cent and then the diversified financial services which accounted for 23.5 per cent of the total value traded last week.

The most actively traded shares were those of Taameer Jordan Holdings, United Group Holdings and United Arab Investors with a combined value traded of JD12.5 million accounting for 12.4 per cent of total value traded.

Several block deals were executed last week, most important of which were on shares of Al Ahlia Enterprises, Middle East Diversified Investments and South Electronics (SECO) with transaction values amounting to JD6.4 million, JD2.6 million and JD2.1 million respectively.

Rum Group for Transportation & Tourism Investment has increased its share in the capital of Zowar Investments (Petra Aviation) to JD1.5 million from its previous share of JD1.2 million. Moreover, the company's board of directors approved a private placement to the company's existing shareholders to cover the one million unsubscribed shares which were previously allocated to a strategic investor.

Afaq Holding for Investment & Real Estate Development has increased its share in Al Motaqadima for Logistical Services & Land Freight to 95 per cent of the company's capital.

A report issued by the Department of Statistics (DoS) showed a 22.9 per cent fall to JD3,929 million in the trade deficit during the first nine months of the year compared to JD5,096 million in the same period of last year.

According to the latest data issued by the Ministry of Finance, the budget deficit during the first 10 months of 2009 rose by 78 per cent to JD892 million compared to JD145 million in the same period of last year.

Excess reserves at the Central Bank of Jordan, including overnight deposits in the deposit window, have reached JD3,700 million as of November 15, 2009. Compulsory reserves have reached JD1,070 million.

The DoS revealed that national exports and imports during the first nine months of the year have declined by 20.9 per cent and 21.8 per cent respectively.

The Jordanian Advertisement Society announced that advertising expenditure has fallen by around 20 per cent in the first nine months of the year compared to the same period in 2008.

Disclaimer: The above information and opinions have been compiled in good faith from sources believed to be reliable, but Capital Investments makes no warranty as to the truth and accuracy of the information contained herein. All opinions expressed are not to be regarded as investment advice, and are only for informative purposes. Therefore, Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any part of this report.